A bankrupt crypto lending company, Celsius Network, reveals about its file request to sell its stablecoin holdings. All the documents related to the case were submitted to the United States Bankruptcy Court Southern District Of New York. In addition, the lender company states it will sell its both existing and the future stable coins which are yet to come.
On a clear note, the main intention of this sale by Celsius is to fund its Chapter 11 case, filed 2 months ago. Earlier in Mid July, the crypto lending firm filed a Chapter 11 bankruptcy after the crash of $2 trillion cash. This unbearable case affected a large number of individual investors to face a massive loss at that time.
Now the bankrupt crypto lender, Celsius is waiting for its hearing for the case on October 6th, 2022. As all the relevant documents are submitted to the court, a legal procedure about the stablecoin sale will be discussed.
In addition, the disclosed documents reveal that Celsius possesses almost 11 different forms of stablecoin worth $23 million.
The Chapter 11 bankruptcy Case of Celsius
The most significant reason for Celsius to get into a trap of liquidity crisis due to the bearish market conditions. Moreover, the crypto lender was tumbling down during the market crash with collapse in all cryptocurrency prices. Specifically, due to the popular TerraUSD and Luna tokens in May.
Thus, when the entire crypto market crashed, Celsius network immediately paused the withdrawals and transfers for its users. As a matter of fact, “halting the withdrawals was difficult but it is necessary” , adds the Celsius team.
Now the sale of the stablecoin case is directed to the Chief U.S. bankruptcy judge, Martin Glenn. More so, as the main intention of this sale is to generate liquidity for Celsius’s operations. So the proceedings of the sale will be directly paid to the company.
Additionally, The U.S Court appoints an independent examiner in Celsius bankruptcy case. In-order to monitor the crypto assets, tax payment systems and to oversee the present state of the mining company to collect further information.
Eventually, the loss is not only to the Celsius network, but also to the other crypto lenders facing a terrible year of 2022. Thus the crash of major Luna community tokens has affected large industry players causing a huge loss in a short period.